Hengan International Group Co ( (HEGIF) ) has released its Q4 earnings. Here is a breakdown of the information Hengan International Group Co presented to its investors.
Hengan International Group Co., a leading player in the personal hygiene sector, specializes in the production and distribution of sanitary napkins, disposable diapers, and tissue paper products. The company operates primarily in China, focusing on product premiumization and expanding its e-commerce and new retail strategies.
In its latest annual earnings report for the year ending December 31, 2024, Hengan International Group Co. reported a decline in revenue by 4.6% to RMB22.67 billion, compared to RMB23.77 billion in the previous year. The company faced challenges due to intensified market competition and rising costs, which impacted its gross profit margin, decreasing from 33.7% to 32.3%.
Key financial metrics revealed a 15.7% drop in operating profit to RMB3.35 billion and a 17.9% decrease in profit attributable to shareholders to RMB2.3 billion. Despite these setbacks, the company maintained a stable dividend payout of RMB1.40 per share for the year. Hengan’s strategic focus on premium product lines and omni-channel sales strategies helped mitigate some of the adverse impacts, with e-commerce and new retail sales growing by 8% year-on-year.
Looking forward, Hengan International remains committed to enhancing its market presence through product innovation and channel diversification. The management anticipates stable revenue growth in 2025, driven by the continued expansion of premium product offerings and the stabilization of raw material prices, which are expected to support the company’s gross profit margins.